Futures positive as overseas markets rally and metals stay strong

By Trevor Hoey. Published at Jul 16, 2020, in Market Wrap

The S&P/ASX 200 index (XJO) increased 112 points or nearly 2% to 6053 points on Wednesday with strong gains coming from the materials index as the miners cashed in on high base metals and iron ore prices, as well as the robust gold price.

Healthcare and IT stocks were also in favour as the sectors gained more than 2.7%.

This outstanding run looks set to continue on Thursday after strong performances in all overseas markets.

The ASX SPI200 index is up 22 points to 6053 points, also suggesting we are in for a positive day.

24 hours

It was the Nikkei 225 that led Asian markets higher as it rallied 1.6% or 358 points to close at 22,905 points.

The Hang Seng was only up marginally, closing at 25,481 points.

After strong performances over recent weeks the Shanghai Composite finally gave up some ground, coming off 53 points to close at 3361 points.

UK and major European indices mirrored the ASX making gains of between 1.8% and 2%.

While the FTSE 100 started in positive territory, it was about midway through the session that it really put the foot down, finishing up 113 points or 1.8%.

The DAX increased from its previous close of less than 12,700 points to touch 13,000 points before closing at 12,930 points, up 1.8%.

This is the first time in nearly 5 months that the DAX has revisited the 13,000 point mark, and the index is now less than 7% off its all-time high.

The CAC 40 outperformed the rest of the region, increasing more than 2% or 101 points to close at 5109 points.

While the mood in the US wasn’t quite as bullish there were still some solid gains made across the indices.

The Dow and the S&P 500 both gained approximately 0.9% with the former finishing up 227 points at 26,870 points.

The NASDAQ continued to edge forward after Monday’s big fall, gaining 62 points or 0.6% to close at 10,550 points.

The Brent Crude Oil Continuous Contract rallied nearly 2% to close at US$43.79 per barrel.

Gold continues to look robust, pushing up towards US$1820 per ounce before closing at US$1814 per ounce.

After a strong rally, iron ore has levelled out in the vicinity of US$112 per tonne.

On the base metals front, copper retraced for a second day, finishing at US$2.91 per pound.

However, other base metals experienced some gains with nickel edging up nearly 1% to close at US$6.09 per tonne, just shy of the near six-month high that it struck last week.

Zinc also rallied 1% to close just shy of US$1.00 per pound, while lead was fairly flat, still hovering in the vicinity of US$0.83 per pound.

The Australian dollar is fetching US$0.70.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!